Its Over, page-5191

@eerrtt I know you are too green to be interested in gold, but one day of lower gold stock prices dont make a difference in the overall scheme of this multi-year PM bull market.

Uncertainty over? Really? COVID is only part of the overall uncertainty equation. It is what comes after, if we can even look past it yet.

Like I said, the time to buy gold and silver stocks is when we have weakness like what we get today.

And when I get that book on the forthcoming US dollar massive depreciation to come, I would be sharing it here next month.

Serves to remind of my previous posts below:


https://hotcopper.com.au/threads/its-over.4002109/page-4872?post_id=46310498#.Xzysd9wzapo

.. this is the gold chart I was looking to find and now I have found it to share with you.

Back to the Bloomberg piece: “Gold ownership among the professional class is viewed to be low. The total value of investor positions in gold futures and exchange-traded funds is equivalent to just 0.6% of the $40 trillion in global funds, according to UBS Group AG strategist Joni Teves. That position could easily double without the allocation looking extreme, she wrote in a note.”
Exactly. Here’s a chart we shared last month. At 0.6%, the number has barely moved since 2016, the last time the chart was updated.

It’s still lower than in 2012, never mind the dizzying manic heights of 40 years ago when people were lining up around the block in Manhattan to buy bullion.

But don’t take it from us. Take it from Geraldine Sundstrom, an expert at Pimco — the $1.9 trillion-strong asset management firm renowned for its bond strategies.

“We need to... look for safe haven beyond government bonds. Given Pimco’s view that rates will be kept very low for years to come, causing depressed levels of real yield, gold feels like an appropriate diversifier.”






Gold shot up 513% over ten years…

Take a look at this chart…

This shows the ratio of the Dow Jones index versus gold all the way back to 1915.
It basically tells you how U.S. stocks are performing compared to the shiny yellow stuff.
If this ratio is going up, stocks are doing great relative to gold.
And if it’s going down, it’s just the opposite… stocks are going down compared to gold.
In short: The red lines on the graph show bull markets in stocks.
The green lines show bull markets in gold.
Now take a look at the end of the chart, here:

What can you see?
The beginning of a new green line.
That means the Dow-to-gold ratio has recently reversed from an uptrend into a downtrend.
And this marks the start of a gold bull market so reliably I believe you could set your watch to it.
Here it is happening in the 1970s…

Here it is happening in the 2000s…

And here is a closer look of it happening today…

The exciting part is that the green line has only just begun… which means gold’s recent rally to seven-year highs could be just the beginning.
As of Friday close, the Dow/Gold is at 13.9

The gold bull markets of the 1970s and 2000s reached their peak when the Dow-to-gold ratio hit around five.
I expect it will be the same this time.
But seeing as we’re nowhere near that point now… I believe there’s a LOT more money to be made.
Now, history is never a guarantee of the future…
But an indicator like this is as close to having an oracle in the markets as you’re ever going to get.

So lets see what possibilities get us to a Dow/Gold ratio of 5

Dow @15,000 Gold$$3000
Dow @20,000 Gold @$4000
Dow @25,000 Gold $5000
Dow @30,000 Gold $6000

So based on this historical precedent, would we see Gold at $3000-$6000 range over the next 5-10 years? POSSIBLE